Buyers grab Milpitas real estate near Great Mall, including school site

MILPITAS — Out-of-state investors have plunked down well over $40 million to buy two sites across the way from the Great Mall in the South Bay, including one parcel where a school currently operates, public records show.

Arizona-based Store Capital, acting through an affiliate, bought properties at 341 Great Mall Parkway and 1323 Great Mall Drive, two adjacent sites in Milpitas, according to documents filed on July 6 at the Santa Clara County Recorder’s Office.

Store Capital, a real estate investment trust, paid a combined $47.3 million for the two properties, the county documents show.

The real estate firm’s affiliate paid $25.8 million for the building at 341 Great Mall Parkway, which totals about 55,500 square feet. The private Stratford School is the occupant of this site. The affiliate paid $21.5 million for an adjacent building that totals 53,700 square feet. The property is an office and research building.

A lease memorandum that was filed separately at the same time as the two deeds for the just-bought properties suggests that another school operation could be in the works at the property adjacent to the Stratford School.

Campbell-based Spring Education Group, which operates an array of private schools, leased the building at 1323 Great Mall Drive, county documents show. The lease began in June. The duration for the rental agreement wasn’t disclosed.

Stratford School is one of the brands of Spring Education Group. Other Spring Education brands with sites in the Bay Area are Basis Independent and Merryhill.

The deals show that educational operations could be seen as viable uses in office and research buildings, despite the uncertainties that have emerged because of post-coronavirus office vacancies and an uneven return to the office.